CIH response to the social housing rent cap consultation

Today, the Department for Levelling Up, Housing, and Communities has issued a consultation to invite views from social housing tenants and landlords on a proposed rent cap to understand how best to support households with the cost of living.

Under the proposals, a cap on social housing rent increases would be put in place for the coming financial year, with options at three, five, and seven per cent being considered. The move would prevent rents for council and housing association houses from rising significantly, providing financial stability for tenants as inflation rises.

The Government regulates how much social housing rents can increase each year. Currently this is set at up to the consumer price index (CPI) rate plus one per cent – meaning potential increases next year of 11% in line with recent Bank of England forecasts.

Responding to consultation Gavin Smart, Chartered Institute of Housing chief executive said:

“Government is right to be concerned about the affordability implications of a very large rent increase driven by the current spike in inflation, so we welcome their decision to launch a consultation now to gather views on a potential rent cap. Both housing providers and tenants must have time to prepare for any changes.   

CIH is clear that affordability for tenants and residents is of paramount importance, but we also understand that rents need to be balanced with viability and investment responsibilities. We look forward to engaging with our members and with government on the detail of the consultation. We know that social landlords share these concerns and have already been exploring how best to protect affordability while delivering on their investment commitments.”

The consultation will run for six weeks closing on 12 October. You can submit your views on the consultation here